Owning an Illinois business is a significant accomplishment. However, if you’re going through a divorce, you might worry that everything you’ve built will come crumbling down. This is how a divorce can impact your business and how you can protect it.
Effects of divorce on a business
As a business owner going through a divorce, you will probably experience disruptions in your company’s daily operations. Ending your marriage means you have to miss time off from your regular routine as you prepare the divorce-related paperwork and attend meetings. Depending on whether you go through divorce mediation or traditional court proceedings, this can occur over a period of a few short months or even years.
Because Illinois is an equitable distribution state, your spouse could receive a portion of the company’s value as part of the divorce settlement. This means that they might receive a monetary amount that’s considered fair and equitable. However, if your spouse is a co-owner, it could complicate things because they have a stake in the business. If this is the case and your split is contentious, you might have a fight on your hands.
Protecting your business during your divorce
The best way to protect your business in divorce is to have the appropriate legal paperwork signed ahead of time. A prenuptial or postnuptial agreement can keep your company separate and out of your spouse’s hands.
Safeguard your business from divorce by keeping business and personal finances separate. Your salary should be robust enough to prevent a financial disaster as well. If your spouse is a co-owner, consider buying them out. If they’re willing to accept, it might prevent potentially serious damage.
Always carefully consider which option is best for you before making any moves. You’ve worked too hard to make your business a success.